MOBILE phone operators Vodafone and O2 are understood to be locked in a £3.5bn bid battle for rival T-Mobile UK.
Both Newbury-based Vodafone and O2 - which is owned by Telefonica Spain - are reported to have bid £3.5bn for the group which has been put up for sale by its German owner Deutsche Telekom.
T-Mobile has 16.6 million customers, so success for either group would make it the biggest mobile operator in the UK.
But there are concerns that T-Mobile UK could be withdrawn from sale altogether, as the offers, which were discussed by Deutsche Telekom's board at the end of last month, are below the expectations of the group's chief executive, Rene Obermann.
A sale at £3.5bn would lead to Deutsche Telekom having to make another writedown on the division after the group took a £1.6bn hit on the business in May, as a result of it losing customers to rivals and declining margins.
The auction is understood to be in its final stages and a decision is expected to be announced in the next few weeks.
If Vodafone was successful in its bid, the deal would boost its share of the UK mobile market to 40 per cent of revenues and a near 50 per cent share by customer numbers with 35 million subscribers enabling it to overtake O2 and regain its crown as the country's biggest mobile operator. O2 would see its market share jump to 43 per cent if it is successful, building on the increase seen following its exclusive deal with Apple to supply iPhone handsets.
Telefonica is said to be concerned that O2 would lose its market-leading position in the UK if Vodafone goes ahead with an offer. But both offers are conditional as any deal is likely to be scrutinised by telecoms regulator Ofcom.
Bankers are understood to have given T-Mobile UK a standalone value of £2.5bn, but this could rise by a further £1bn if it was combined with another operator.
Agencies
Showing posts with label Eastern Europe CXOtoday. Show all posts
Showing posts with label Eastern Europe CXOtoday. Show all posts
Monday, September 7, 2009
Monday, March 30, 2009
Is Symphony eyeing more R&D acquisitions in India?
Symphony Services, a provider of outsourced product development, which recently acquired four captive R&D centres in India, expects the trend of captive acquisition to gain further momentum.
Symphony's four captive R&D centres are In-Reality, Intransa, CT Space and Cambridge Tech Partners in India.
Over the last decade, more than 700 product companies have embraced the offshore model and established captives in India, China, Eastern Europe and other lower cost, high talent regions.
Talking to CXOtoday, Ajay Kela, chief operating officer and managing director, Symphony Services, said, "Symphony's four acquisitions in the recent past are software companies with captive operations in India. We are currently in discussion with some of the subscale captives for acquisition and helping them turnaround, but cannot disclose the actual number."
Now with the recession sinking deeper, most parent companies are increasingly conserving cash and tend to avoid additional infrastructure expenses in a captive centre, thus giving opportunities for companies to acquire.
According to a report by Forrester, titled "Shattering the Offshore Captive Center Myth", about 60% of captives are struggling as they fail to meet expectations. There are several common reasons for failure: a poor delivery track record, operational problems, lack of scale, poor morale and high attrition, and escalating costs.
The challenges that captives are facing is resulting in a significant decrease in the number of new captives that are being introduced. According to Management Consulting company Zinnov, the number of new captives started in India over the last few years has declined from 76 to 15. Also, service providers are expected to outpace the growth of captives by more than 300% over the next four years.
Symphony acquisitions have been of different types - from outright purchase or acquisition of a captive to captive transfer where the deals did not have significant monetary implications, but captive transfers of its employees and operations to be run by Symphony.
In a 'captive transfer' employees of the captive entity become Symphonians and both the management teams collaborate to manage the operations and ensure product research and development for the parent company, Kela said.
"Over the last few years, there has been a trend of many subscale captives (manpower of less than 500 people) exploring alternative strategies like transferring their captive operations to services providers for managing their global product engineering operations because it no longer makes economic sense for them to run their own captive centre," said Kela.
Also, most software companies cannot afford to dramatically increase R&D expenditures by moving resources back onshore. Hence transferring their captive to a provider is a viable option for software companies and continues to leverage from the offshoring model, he said.
CXOtoday
Symphony's four captive R&D centres are In-Reality, Intransa, CT Space and Cambridge Tech Partners in India.
Over the last decade, more than 700 product companies have embraced the offshore model and established captives in India, China, Eastern Europe and other lower cost, high talent regions.
Talking to CXOtoday, Ajay Kela, chief operating officer and managing director, Symphony Services, said, "Symphony's four acquisitions in the recent past are software companies with captive operations in India. We are currently in discussion with some of the subscale captives for acquisition and helping them turnaround, but cannot disclose the actual number."
Now with the recession sinking deeper, most parent companies are increasingly conserving cash and tend to avoid additional infrastructure expenses in a captive centre, thus giving opportunities for companies to acquire.
According to a report by Forrester, titled "Shattering the Offshore Captive Center Myth", about 60% of captives are struggling as they fail to meet expectations. There are several common reasons for failure: a poor delivery track record, operational problems, lack of scale, poor morale and high attrition, and escalating costs.
The challenges that captives are facing is resulting in a significant decrease in the number of new captives that are being introduced. According to Management Consulting company Zinnov, the number of new captives started in India over the last few years has declined from 76 to 15. Also, service providers are expected to outpace the growth of captives by more than 300% over the next four years.
Symphony acquisitions have been of different types - from outright purchase or acquisition of a captive to captive transfer where the deals did not have significant monetary implications, but captive transfers of its employees and operations to be run by Symphony.
In a 'captive transfer' employees of the captive entity become Symphonians and both the management teams collaborate to manage the operations and ensure product research and development for the parent company, Kela said.
"Over the last few years, there has been a trend of many subscale captives (manpower of less than 500 people) exploring alternative strategies like transferring their captive operations to services providers for managing their global product engineering operations because it no longer makes economic sense for them to run their own captive centre," said Kela.
Also, most software companies cannot afford to dramatically increase R&D expenditures by moving resources back onshore. Hence transferring their captive to a provider is a viable option for software companies and continues to leverage from the offshoring model, he said.
CXOtoday
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